Mint Position

Similar to other concentrated-liquidity position manager patterns, liquidity positions are minted as ERC-721 tokens and depend on a periphery contract. v4's PositionManager contract will facilitate liquidity management

Context

Please note that PositionManager is a command-based contract, where integrators will be encoding commands and their corresponding parameters.

Setup

See the setup guide

Guide

Below is a step-by-step guide for minting a v4 liquidity position, in solidity

1. Import and define IPositionManager

import {IPositionManager} from "v4-periphery/src/interfaces/IPositionManager.sol";

// inside a contract, test, or foundry script:
IPositionManager posm = IPositionManager(<address>);

2. Encode Actions

To mint a position, two actions are required:

• mint operation - the creation of the liquidity position
• settle pair - the two tokens to be paid by msg.sender

If providing ETH liquidity, a third action is required:

• sweep - to recover excess eth sent to the position manager

import {Actions} from "v4-periphery/src/libraries/Actions.sol";

bytes memory actions = abi.encodePacked(uint8(Actions.MINT_POSITION), uint8(Actions.SETTLE_PAIR));

// For ETH liquidity positions
bytes memory actions = abi.encodePacked(uint8(Actions.MINT_POSITION), uint8(Actions.SETTLE_PAIR), uint8(Actions.SWEEP));

3. Encode Parameters

bytes[] memory params = new bytes[](2); // new bytes[](3) for ETH liquidity positions

The MINT_POSITION action requires the following parameters:

Parameter	Type	Description
poolKey	PoolKey	where the liquidity will be added to
tickLower	int24	the lower tick boundary of the position
tickUpper	int24	the upper tick boundary of the position
liquidity	uint256	the amount of liquidity units to mint
amount0Max	uint128	the maximum amount of currency0 msg.sender is willing to pay
amount1Max	uint128	the maximum amount of currency1 msg.sender is willing to pay
recipient	address	the address that will receive the liquidity position (ERC-721)
hookData	bytes	arbitrary data that will be forwarded to hook functions

Currency currency0 = Currency.wrap(<tokenAddress1>); // tokenAddress1 = 0 for native ETH
Currency currency1 = Currency.wrap(<tokenAddress2>);
PoolKey poolKey = PoolKey(currency0, currency1, 3000, 60, IHooks(hook));

params[0] = abi.encode(poolKey, tickLower, tickUpper, liquidity, amount0Max, amount1Max, recipient, hookData);

The SETTLE_PAIR action requires the following parameters:

• currency0 - Currency, one of the tokens to be paid by msg.sender
• currency1 - Currency, the other token to be paid by msg.sender

params[1] = abi.encode(currency0, currency1);

The SWEEP action requires the following parameters:

• currency - Currency, token to sweep - most commonly native Ether: CurrencyLibrary.ADDRESS_ZERO
• recipient - address, where to send excess tokens

params[2] = abi.encode(currency, recipient);

4. Submit Call

The entrypoint for all liquidity operations is modifyLiquidities()

uint256 deadline = block.timestamp + 60;

uint256 valueToPass = currency0.isAddressZero() ? amount0Max : 0;

posm.modifyLiquidities{value: valueToPass}(
    abi.encode(actions, params),
    deadline
);

Additional notes:

• To obtain balance changes, callers should read token balances before and after the .modifyLiquidities() call